briefing materials on consolidated results for the first ......-a system for tailoring new dresses...

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Briefing Materials on Consolidated Resultsfor the First Quarter Ended June 30, 2011

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I. Overview of Consolidated Results fI. Overview of Consolidated Results foror the the First QuarterFirst Quarter Ended Ended June 30,June 30, 20112011

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II--1. Overview of Consolidated Results1. Overview of Consolidated Results(Unit: Millions of yen)

Item 1Q FY2011 1Q FY2010 Change

Net sales 11,837 13,010 Down 9.0%

Gross profit 7,907 8,577 Down 7.8%

Gross profit ratio 66.8% 65.9% Up 0.9 points

Selling, general and administrative expenses 7,674 8,054 Down 4.7%

SG&A ratio 64.8% 61.9% Up 2.9 points

Operating income 232 522 Down 55.6%

Operating income ratio 2.0% 4.0% Down 2.0 points

Ordinary income 261 390 Down 32.9%

Ordinary income ratio 2.2% 3.0% Down 0.8 points

Net income 81 47 Up 73.1%

The postponement and cancellation of weddings, accommodation bookings and banquets due to the occurrence of the Great East Japan Earthquake, and the suspension of operations in certain facilities and stores in eastern Japan led to a reduction in revenue.

Efforts were made to reduce selling, general and administrative expenses through the implementation of structural reform, but operating income decreased due to a decline in sales resulting from the effects of the Great East Japan Earthquake.

■Net sales

■Operating income

Although an extraordinary loss of ¥468 million was recorded in the previous fiscal year due to the occurrence of asset retirement obligations, a loss on disaster totaling ¥60 million was incurred this year, leading to an increase in net income this fiscal year.

■Net income

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II--2. Overview of Consolidated Results2. Overview of Consolidated Results((MielparqueMielparque // Existing)Existing)

ItemConsolidated Existing Mielparque

1Q FY2011

1Q FY2010

1Q FY2011

1Q FY2010

1Q FY2011

1Q FY2010

Net sales 11,837 13,010 7,636 8,297 4,200 4,712

Gross profit 7,907 8,577 5,021 5,305 2,885 3,271Gross profit ratio 66.8% 65.9% 65.8% 63.9% 68.7% 69.4%

Selling, general and administrative expenses

7,674 8,054 4,767 4,817 2,906 3,236

SG&A ratio 64.8% 61.9% 62.4% 58.1% 69.2% 68.7%

Operating income 232 522 253 487 -21 35Operating income ratio 2.0% 4.0% 3.3% 5.9% -0.5% 0.7%

Ordinary income 261 390 267 351 -6 38Ordinary income ratio 2.2% 3.0% 3.5% 4.2% -0.1% 0.8%

(Unit: Millions of yen)

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11,200

11,400

11,600

11,800

12,000

12,200

12,400

12,600

12,800

13,000

13,200

II--3. 3. Net Sales Factor Analysis (year on year)Net Sales Factor Analysis (year on year)

1Q FY2010 Down ¥1,173 million

13,010

11,837

1Q FY2011

-985

-24 -46 -125Domestic Wedding Services

Overseas Wedding Services

MerchandiseGarment Rentals Other

+8

The postponement and cancellation of weddings, accommodation bookings and banquets due to the occurrence of the Great East Japan Earthquake led to a reduction mainly in sales of Domestic Wedding Service.


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11,000

11,200

11,400

11,600

11,800

12,000

12,200

12,400

12,600

12,800

13,000

13,200

1Q FY2010 Down ¥1,173 million 1Q FY2011

13,010

11,837

-1,160


Impact of the Earthquake

Disaster

New Business

+78 -143 +52Closed Branch Other

Net sales decreased by ¥1,160 million due to 1. the postponement and cancellation of weddings, 2. cancellation of banquets and accommodation bookings, 3. the suspension of operations in certain facilities and stores in eastern Japan and 4. reduced order in March resulting from the effects of the Great East Japan Earthquake.

II--3. Net Sales Factor Analysis3. Net Sales Factor Analysis::Impact of the Great East Japan EarthquakeImpact of the Great East Japan Earthquake

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0

100

200

300

400

500

600

II--4. Operating Income 4. Operating Income Factor Analysis (Factor Analysis (year on yearyear on year) )

1Q FY2010 Down ¥290 million

523

232

1Q FY2011

-356

-30

+330


Decreased gross profit due to a decrease in net sales

Decreased income due to a decrease in the

gross profit margin

Increased income due to reduction of expenses

-423

＋138

＋50

Decreased gross profit due to a

decrease in net sales

Increased income due to an increase in the gross profit

marginIncreased

income due to a decrease in expenses

Mielparque: -56 Existing: -234

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3,462

3,591

421

465

1,611

1,749

1,566

1,631

380

381

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

12年3月期第1四半期

11年3月期第1四半期


(8,054)

(7,674)

Personnel expenses


SG&A ratio 1Q FY2010: 61.9% 1Q FY2011: 64.8% (Up 2.9 points year on year)

II--5. Selling, General and Administrative Expenses5. Selling, General and Administrative Expenses(Changes by Item)(Changes by Item)

1Q FY2010

1Q FY2011

OtherAdvertising expenses Other Rent

expenses Depreciation

Personnel expenses OtherAdvertising expenses Other Rent

expenses Depreciation

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II.II. Overview of the First Quarter Ended Overview of the First Quarter Ended June 30, 2011 by Business CategoryJune 30, 2011 by Business Category

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IIII--1. Overview of P1. Overview of Profit rofit // LLossoss by Business Category by Business Category ((year on yearyear on year))

Gross profit ratio

Gross profit ratio

PercentagePercentage

8,577235912423

1,5195,486

13,010235

1,210734

2,5478,281

1Q FY2010

66.8%

100.0%

78.7%

56.5%

62.2%

66.5%

100.0%

2.1%

9.2%

5.8%

21.3%

61.6%

Down 9.0%100.0%11,837Net sales

Up 3.5%1.8%243Commissions

Down 10.3%9.3%1,085Garment Rentals

Down 6.4%5.6%687Merchandise

Down 1.0%19.6%2,523Overseas Wedding Services

Down 11.9%63.7%7,295Domestic Wedding Services

Down 1.1 points57.6%388Merchandise

Up 3.4 points75.3%854Garment Rentals

100.0%243Commissions

Up 0.9 points65.9%7,907Gross profit

Up 2.6 points59.6%1,569Overseas Wedding Services

Up 0.2 points66.3%4,851Domestic Wedding Services

Change1Q FY2011Item(Unit: Millions of yen)

Gross profit

Net sales

The cost of goods in the fiscal year 2010 has been changed to match this year’s level.

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Up 0.6%3,1643,184Average amount spent per wedding (Thousands of yen)

Down 9.1%394358Number of couples (Couple)Meguro Gajoen*1

Up 0.4%2,2022,211Average amount spent per wedding (Thousands of yen)

Down 6.3%1,000937Number of couples (Couple)Mielparque*1

Including weddings in Okinawa*2 Up 8.2%753815Average amount spent per

wedding (Thousands of yen)

Down 19.0%1,087881Number of couples (Couple)

Up 6.1%725769Average amount spent per wedding (Thousands of yen)

Down 14.7%1,2691,082Number of couples (Couple)Resort weddings *2

In-house chapel facilities

Number of couples (Couple)

2,366

391

66.3%

5,486

32

3,054

8,281

1Q FY2010

Up 1.9%

Down 11.3%

Up 0.2 points

Down 11.6%

-

Down 10.8%

Down 11.9%

Change

32

4,851Gross profit from Domestic Wedding Services(Millions of yen)

66.5%Gross profit ratio

2,724

Average amount spent per wedding (Thousands of yen)

Number of couples (Couple)

2,411

347Other

7,295

1Q FY2011

Net sales from Domestic Wedding Services(Millions of yen)

*1. The average amount spent per wedding in Wedding Division was used as the average amount for Mielparque and Meguro Gajoen.

*2. A change has been made to the method used to calculate the average amount in Okinawa. The previous year's average amount has been recalculated to accommodate the change.

IIII--2. Overview of P2. Overview of Profit rofit // LLossoss by Business Categoryby Business CategoryDomestic Wedding ServicesDomestic Wedding Services

[Overview]

Revenue declined due to the postponement and cancellation of weddings, banquets and accommodation bookings, and the suspension of operations of Mielparque Sendai resulting from the Great East Japan Earthquake.

[The Impact of the Great East Japan Earthquake]

¥110 million:Postponement and cancellation of weddings

¥270 million: Cancellation of banquets and accommodation bookings

¥330 million: Suspension of operations of certain facilities and stores in eastern Japan

¥150 million: Reduced orders in March

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Down 2.9%4,3924,265Number of couples (Couple)

Up 2.6 points59.6%62.2%Overseas Wedding Services Gross profit ratio

Up 3.3%1,5191,569Gross profit from Overseas Wedding Services(Millions of yen)

Down 22.2%158123Bali

Down 2.9%4,3924,265Total (Couple)

Num

ber of couples

Down 1.0 point

Up 20.7%

Up 43.5%

Down 21.8%

Down 11.5%

Up 2.1%

Up 1.2%

Down 1.0%

Change

73.4%

0

25146

2391,3972,301

545

2,547

1Q FY2010

72.4%

0

30366

1871,2372,349

551

2,523

1Q FY2011

Average spending per couple (Thousands of yen)

Hawaii

Micronesia

Oceania

North America

Europe

Other

Usage rate of in-house chapels

Net sales from Overseas Wedding Services(Millions of yen)

IIII--3. Overview of Profit / Loss by Business Category3. Overview of Profit / Loss by Business CategoryOverseas Wedding Services (1) Japanese MarketOverseas Wedding Services (1) Japanese Market

[Overview]

Although there were cancellations and postponements of weddings resulting from the effects of the Great East Japan Earthquake, net sales only decreased by a small margin due to the effect of a new chapel beginning operation in Hawaii.

[The Impact of the Great East JapanEarthquake]

¥100 million: Postponement and cancellation of weddings

¥200 million: Reduced orders in March

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Up 9.0%100109Number of couples (Couple) *1

Up 26.5%102129Total (Couple)

Down 30.4%4632Number of couples: from overseas to domestic (Couple)

Up 73.2%5697Number of couples: from overseas to overseas(Couple)

Asia Destination wedding service business *2

Down 4.1%1,5501,486Average amount spent per wedding (Thousands of yen) *1

Up 4.5%155162Grace HillNet sales (Millions of yen)

Change1Q FY20101Q FY2011

Asia ‘Local’ wedding service business

IIII--3. Overview of Profit / Loss by Business Category3. Overview of Profit / Loss by Business CategoryOverseas Wedding Services (2) Progress in Asia BusinessOverseas Wedding Services (2) Progress in Asia Business

[Overview]

There was a decrease in the number of overseas to domestic weddings because of the impact of the Great East Japan Earthquake, but overseas to overseas performed well, and the number of Asian couples increased.

*1. The number of couples and the average amount spent per wedding are the figures for the Wedding Division of Grace Hill. Average amount spent per wedding at Grace Hill is calculated by dividing net sales by the number of couples.

*2. The number of couples for the destination wedding service business in East Asia is the figure for the number of couples traveled from Hong Kong, Taiwan and Shanghai.

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57.6%

423

78

856

189

3,149

734

1Q FY2010

Down 1.1 points

Down 8.2%

Up 9.0%

Down 27.6%

Down 2.1%

Down 15.9%

Down 6.4%

Change

56.5%

388

85

620

185

2,648

687

1Q FY2011

Average price of tuxedos sold (UOMO) (Thousands of yen)

Tuxedos sold(UOMO)

Average price of dresses sold (Avica, FR) (Thousands of yen)

Dresses sold (Avica, FR)

Gross profit from Merchandise (Millions of yen)

Merchandise Gross profit ratio

Net sales from Merchandise (Millions of yen)

(Reference) Total Wedding Dresses (Avica + FR + RS)

156

5,312

Up 2.6%

Down 17.8%

160

4,368

Total dresses (sales and rentals) (Thousands of yen)

Total dresses (sales and rentals)

IIII--4. Overview of Profit / Loss by Business Category4. Overview of Profit / Loss by Business CategoryMerchandiseMerchandise

[Overview]

The number of dresses sold decreased due to the decline in the number of weddings.

* Avica dresses: Order system dresses- A system for tailoring new dresses to match the customer's body shape based on over 90 designs and Japanese sizes ranging from 3 to 37.

* FR dresses: Dress first rental - A system in which customers pick up a new dress at the store or facility where the wedding is held based on the garments chosen at a store near home.

* The number of dresses sold includes those sold by Mielparque and Meguro Gajoen, but the net sales are included in domestic wedding services net sales.

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75.3%

912

91

2,262

109

2,163

1,210

1Q FY2010

Average "Studio Photo Plan" price (Thousands of yen)

Number of "Studio Photo Plan" sales

Average price of RS dresses sold (Thousands of yen)

Number of RS dresses sold

Up 3.4 points

Down 6.4%

Up 9.9%

Down 18.4%

Up 11.0%

Down 20.5%

Down 10.3%

Change

78.7%

854

100

1,846

121

1,720

1,085

1Q FY2011

Gross profit from Garment Rentals (Millions of yen)

Garment Rentals Gross profit ratio

Revenue from Garment Rentals(Millions of yen)

IIII--5. Overview of Profit / Loss by Business Category5. Overview of Profit / Loss by Business CategoryGarment RentalsGarment Rentals

[Overview]

Net sales from garment rentals decreased due to the decrease in the number of weddings and the closure of garment salons.

* RS: Garment rental reservation system- This is a rental system in which the customer reserves a dress/tuxedo at Watabe Wedding stores in Japan, and a dress/tuxedo of the same design and size is provided at the overseas store.

* Studio Photo Plan: Plan where photos are taken in a studio in advance (excluding Mielparque)

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III.III. Balance SheetsBalance Sheets

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IIIIII--1. Balance Sheets (Consolidated)1. Balance Sheets (Consolidated)

25,075

3,476

1,001

4,477

973

5,961

4,626

10,588

16,039

5,028

1,504

2,503

9,035

As of Mar. 31, 2011

As of Jun. 30, 2011

Total current assets 8,677 -358Cash and deposits

Accounts receivable-trade

Other

4,739

1,621

2,316

-288

+117

-186

Total noncurrent assets 15,756 -283Property, plant and equipment 10,419 -168

Buildings and structures

Other

5,823

4,596

-138

-30

Intangible assets 956 -17

Investments and other assets 4,380 -97

Guarantee deposits

Other

3,364

1,015

-112

+14

Total assets 24,433 -642 25,075

15,971

4,176

4,038

7,757

-1,453

4

14,523

1,500

542

751

2,7932,4982,335

573850

1,5017,759

10,552

As of Mar. 31, 2011

As of Jun. 30, 2011

Total liabilities 9,972 -579Current liabilities 7,215 -544

Accounts payable-trade 1,536 +35Short-term loans payable 875 +25Provision for bonuses 256 -317Advances received 2,363 +28Other 2,182 -316

Noncurrent liabilities 2,757 -35Long-term loans payable

Asset retirement obligations

Other

1,450

540

767

-50

-2

+16

Net assets 14,460 -62I. Shareholders' equity

Capital stock

Capital surplus

Retained earnings

II. Valuation and translation adjustments

III. Minority interests

15,905

4,176

4,038

7,691

-1,453

8

-66

-

-

-66

-

+4

Total liabilities and net assets 24,433 -642

Equity ratio 59.1% 57.9%Up 1.2points


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IV. Basic Policy for Fiscal Year 2011IV. Basic Policy for Fiscal Year 2011

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IVIV--1. Basic Policy for Fiscal Year 20111. Basic Policy for Fiscal Year 2011

Basic Policy

Work toward a V-shaped recovery through improved profitability

Improved Profitability

■Place priority on resolving immediate issues in an effort to improve profitability■

Our primary goal will be to achieve a V-shaped recovery in the fiscal year 2012, by countering the effects of the Great East Japan Earthquake to ensure earnings on par with the previous year, and by

making this year achieving one of refining our structural reforms

Growth Strategy

■Focus on investment in growth area centered on Asia■

Specialize in investment in growth areas centered on Asia, and specialize on content that contributes to a V-shaped recovery next fiscal year

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Item FY2011 (Plan) FY2010 Change

Net sales 50,400 50,555 Down 0.3%

Gross profit 33,404 33,482 Down 0.2%

Gross profit ratio 66.3% 66.2% Up 0.1 points

Selling, general and administrative expenses 32,204 32,097 Up 0.3%

SG&A ratio 63.9% 63.5% Up 0.4 points

Operating income 1,200 1,385 Down 13.4%

Operating income ratio 2.4% 2.7% Down 0.3 points

Ordinary income 1,200 1,345 Down 10.8%

Ordinary income ratio 2.4% 2.7% Down 0.3 points

Net income 460 176 Up 160.4%


IVIV--2. Plan for Fiscal Year 2. Plan for Fiscal Year 20112011

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ChangeFY2010FY2011 (Plan)ChangeFY2010FY2011

(Plan)

-

Down 2.8 points

-

Down 3.3 points

-

Down 8.9%

-175

0.1%

33

0.6%

150

24,137

-500-2.7%

-600-2.7%

-60022,000

First HalfItem

Second Half

Net sales 28,400 26,418 Up 7.5%

Operating income 1,800 1,235 Up 45.7%

Operating income ratio 6.3% 4.7% Up 1.6 points

Ordinary income 1,800 1,312 Up 37.2%

Ordinary income ratio 6.3% 5.0% Up 1.3 points

Net income 960 349 Up 175.1%

IVIV--2. Plan for First & Second Half of Fiscal Year 2. Plan for First & Second Half of Fiscal Year 20112011


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IVIV--2. Plan for Fiscal Year 2. Plan for Fiscal Year 20112011

0

5000

10000

15000

20000

25000

30000

1Q 2Q 2nd half

FY2010FY2011

-1000

-500

0

500

1000

1500

2000

1Q 2Q 2nd half

FY2010

FY2011

Net sales

Operating income

Decreased by 9% in net sales due to the earthquake

Decreased operating income due to a decrease

in net sales

Recovery from the earthquake

Favorable increase in number of orders received Overseas WeddingUp 9% year on year

MielparqueUp 6% year on year

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V. Business Policies for the V. Business Policies for the Fiscal Fiscal Year 201Year 20111

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VV--1. Business Policies for the Fiscal Year 20111. Business Policies for the Fiscal Year 2011

Business Policy 1 Recovery from the Great East Japan Earthquake

Business Policy 3

Business Policy 2

Growth strategy: Expansion of East Asia strategy

Structural reform: Year of refining

Business Policies

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VV--1. Business Policy 11. Business Policy 1Recovery from the Great East Japan Earthquake Recovery from the Great East Japan Earthquake


Business Policy 3

Business Policy 2



Business Policies

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VV--1. 1. Business Policy 1Business Policy 1Recovery from the Great East Japan Earthquake Recovery from the Great East Japan Earthquake

Watabe Wedding

1. Measures aimed at recovery in numbers of weddings

Meet demand for “resort weddings”

Main clients for “resort weddings”

Big Wedding

５０％

Survey by Watabe Wedding N=694

For couples concerned about appearances or who want a big wedding.* Income: high * Average age: 29.6

* Wedding expenses: tend to be high

For couples who want an unforgettable wedding just by themselves at an affordable price.* Income: middle * Average age: 31.6

* Wedding expenses: low-affordable

For couples who want guests such as parents to enjoy a simple wedding.* Income: middle * Average age: 30.2

* Wedding expenses: mid-range

Prefer to have low cost, but want a certain level of service

Wedding for Two

１５％

Wedding with Loved Ones

３３％

Average amount spent per wedding

Big Wedding: ¥2.3M

Wedding with Loved Ones: ¥1.7M

Wedding for Two: ¥1.3M

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1. Measures aimed at recovery in numbers of weddings - Meet demand for “resort weddings” -

- Effect of year-round operation of new chapel in Hawaii

- Renovation of facilities aimed at couples who want big weddings

Hawaii Guam Okinawa

“Honu Kai Lani at Ko Olina Place of Welina” “Blue Aster” “Aquagrace Chapel”

Opened in Nov. 2010

Renovated by Sep. 2011

Renovated by Sep. 2011

Watabe Wedding

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Watabe Wedding

1. Measures aimed at recovery in number of weddings - Meet demand for “resort weddings” -

- Refurbishing directly operated stores – Targeting people who want a Big Wedding -

Facilities System Hospitality

Tokyo: Mirraza Shinjuku SalonWith Kids Room @ Mirraza Shinjuku Salon

The concept is a “Traditional Resort”

Use of ACTUS furniture

Implemented in Shinjuku, Nagoya and Omiya

Implementation of touch panels and iPads for customer

serviceConsideration given to customers with children

Manuals for customer service processes

Assignment of wedding concierges

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Watabe Wedding

1. Measures aimed at recovery in numbers of weddings - Meet demand for “resort weddings”-

- Attract the “No Wedding” group of customers to resort weddings

- Meet demand for “Wedding for Two” -

■■Key Points■■

■ Affordable

■ Only sold on the Internet

■ Applications made easy by phone or e-mail

- 30 -

VV--1. 1. Business Policy Business Policy 11Recovery from the Great East Japan Earthquake Recovery from the Great East Japan Earthquake

Watabe Wedding

2. Measures aimed at increasing average amount spent per wedding

Year-round operation of Honu Kai Lani, our new facility in Hawaii

0

200

400

600

800

1000

1200

Average amount in Hawaii Average amount in Honu Kai Lani

¥ 645,000

¥1,100,000 ■■Key Points■■

■ Increased average amount spent per wedding through year-round operation of facilities with higher average amount

■ Target for average amount spent on overseas wedding services

¥587,000 (¥20,000 more than the previous year)

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420 396

717656

430

699

350

400

450

500

550

600

650

700

750

800

850

FY2008 FY2009 FY2010

Partner sales

Directly operated stores

(Thousands of yen)

196219

25367%51%

72%

100

150

200

250

300

350

FY2008 FY2009 FY2010 FY2011 (Plan)0%10%20%30%40%50%60%70%80%90%100%

CSC usage rate

Average CSC cost


Watabe Wedding

2. Measures aimed at increasing average amount spent per wedding

- Strengthening customer support center functions

■■Key Point■■

■ Developing customer support personnel for partner sales

- 32 -


Meguro Gajoen


Operation of new chapel

“Villa di grazia”

Opened in May 2011 ■■Key Points■■

■ Opened the first stand-alone chapel in Meguro Gajoen

■ Attract new customers by introducing a new chapel in Meguro Gajoen, which has a solid reputation for “Japanese” weddings

- 33 -


Meguro Gajoen

2. Measures aimed at recovery in demand for banquets

Attracting individual demand

Events held at “100-step staircase”

Establish “Shukugasai” brand ■■Key Points■■

■ Increase number of visitors through events centered on “100-step staircase”

■ “Shukugasai”anniversary merchandise

- 34 -

Mielparque


・A special campaign in the time demand for wedding increases

■■Key Points■■

■ Campaign at all facilities over the same period

■ Attract customers in the time demand for wedding increases


- 35 -


Mielparque

2. Measures aimed at recovery in numbers of banquets and accommodation demand

Attracting demand among general public

Measures aimed at recovery in demand for banquets

Measures aimed at recovery in accommodation demand

- Use of the Meguro Gajoen “Shukugasai” brand in Mielparque facilities

- Implement measures to increase occupancy rates

Expand the number of market channels

Restore occupancy rates to 70%

- 36 -

VV--2. Business Policy 22. Business Policy 2Improve profitability through structural reformsImprove profitability through structural reforms


Business Policy 3

Business Policy 2



Business Policies

- 37 -

Policy

Practical Measures

Improve profitability through structural reforms

1. Lowering of break-even point by reducing fixed expenses

2. Conversion of fixed expenses to variable expenses

VV--2. 2. Business Policy 2Business Policy 2Improve profitability through structural reformsImprove profitability through structural reforms

30,000

30,500

31,000

31,500

32,000

32,500

33,000

FY2009

32,408


32,097 32,204-700

-50 +439 -520 +147+480

Structural reforms

Impact of the

earthquake

New businesses,

etc.

Structural reforms

Impact of the

earthquake

New businesses,

etc.

Change in SG&A Expenses

Implementation of worth 1.2 billion yen structural reforms

FY2010 FY2011 (Plan)

- 38 -

VV--2. 2. Business Policy 2 Business Policy 2 Improve profitability through structural reformsImprove profitability through structural reforms

Existing

Value of structural reforms implemented for FY2010: ¥70 million

Scheduled value of structural reforms for FY2011: ¥240 million

Dec. 2010 Consolidation of Tachikawa and Shinjuku wedding salons → “Mirraza Shinjuku”

Jan. 2011 Consolidation of two stores in Nagoya

Jun. 2011 Consolidation of Omiya, Takasaki and Utsunomiya stores

Jun. 2011 Closure of the Hamamatsu store

Nov. 2011 Closure of the Shizuoka store

2. Completion of transfer of dress production to Vietnam

1. Consolidation and closure of directly operated stores

- 39 -

VV--2. 2. Business Policy 2Business Policy 2Improve profitability through structural reformsImprove profitability through structural reforms

Mielparque

Value of structural reforms implemented for FY2010: ¥630 million

Scheduled value of structural reforms for FY2011: ¥280 million

1. Review of personnel expenses

2. Review of SG&A

Review of full-time wait-staff

Review of outsourcing agreements

Reduction of personnel in head office and facilities

Measures aimed at the elderly

Review of personnel system, etc.

Review of outsourcing agreements

Thorough management of departments using heating and lighting expenses

- 40 -

VV--3. Business Policy 33. Business Policy 3Growth strategy: Expansion of East Asia strategyGrowth strategy: Expansion of East Asia strategy


Business Policy 3

Business Policy 2

Growth strategy: Expansion of Asia strategy


Business Policies

- 41 -

383560

3,000

0

500

1000

1500

2000

2500

3000

3500

FY2010 FY2011 (Plan) Mid-Term Plan

VV--3. Business Policy 33. Business Policy 3Growth strategy: Expansion of Asia strategyGrowth strategy: Expansion of Asia strategy

Policy

Practical Measure


[1] Expansion of the local wedding service business in Asia

This year’s target

■ Grace Hill opened in April 2010

Taiwan Singapore

■ Chijmes Hall started April 2011

(Unit: Couple)

- 42 -

VV--3. Business Policy 33. Business Policy 3Growth strategyGrowth strategy：：Expansion of Asia strategyExpansion of Asia strategy

Policy

Practical Measure


[2] Expansion of the destination wedding service business in Asia

140 188 198533

900

5,000

0

1000

2000

3000

4000

5000

6000

FY2007 FY2008 FY2009 FY2010 FY2011 (Plan) Mid-Term Plan

■Hong Kong Branch opened in October 2007

■Taiwan Branch opened in June 2009

■Shanghai Branch opened in September 2010 This year’s

target

(Unit: Couple)

Strengthening of overseas-to-overseas

Strengthened areas: Guam, Saipan, Bali

- 43 -

Avoid using single business model in order to diversify risk

Benefit from broad portfolio operated from Japan

Wedding at leased premises

Hong Kong

Taiwan

Shanghai

Resort Wedding

Hotel weddingWedding at heritage site

Watabe Wedding Group

Broad portfolio


Singapore

- 44 -


Policy

Practical Measure


[1] Expansion of the local wedding service business in Asia[2] Expansion of the destination wedding service business in Asia

<Overall Asia business>Mid-term target

Net sales: ¥5.0 billionNumber of couples: 8,000

<Local wedding service business in Asia>

Operational scale


Overall target

<Destination wedding service business in Asia>

Operational scale


- 45 -Design By W.W Article

Family ties, creating precious memory

- 46 -

VI. VI. FY201FY20111 Reference MaterialsReference Materials

- 47 -

VIVI--1. Plan for the Fiscal Year 2011 1. Plan for the Fiscal Year 2011 (Mielparque / Existing)(Mielparque / Existing)

ItemConsolidated Existing Mielparque

FY2011 (Plan) FY2010 FY2011 (Plan) FY2010 FY2011 (Plan) FY2010

Net sales 50,400 50,555 32,000 32,116 18,400 18,438Gross profit 33,404 33,482 20,800 20,855 12,604 12,627

Gross profit ratio 66.3% 66.2% 65.0% 64.9% 68.5% 68.5%


32,204 32,097 19,750 19,487 12,454 12,610

SG&A ratio 63.9% 63.5% 61.7% 60.7% 67.7% 68.4%

Operating income 1,200 1,385 1,050 1,368 150 16Operating income ratio 2.4% 2.7% 3.3% 4.3% 0.8% 0.1%

Ordinary income 1,200 1,345 1,050 1,322 150 23Ordinary income ratio 2.4% 2.7% 3.3% 4.1% 0.8% 0.1%

Net income 460 176


- 48 -

Item FY2011 (Plan) FY2010

Domestic Wedding Services 31,550 32,134 Down 1.8%

Overseas Wedding Services 10,000 9,046 Up 10.6%

Merchandise 3,600 3,646 Down 1.3%

Garment Rentals 4,300 4,772 Down 9.9%

Commissions 950 954 Down 0.4%

Net sales 50,400 50,555 Down 0.3%


VIVI--22. Plan for the . Plan for the Fiscal YFiscal Yearear 2012011: 1: Net Sales by SegmentNet Sales by Segment

- 49 -

Number of couples (Plan)

FY2011 (Plan) FY2010 Change

■ Domestic Wedding Services

Number of couples 11,300 11,561 -261

Mielparque 4,000 4,010 -10

Meguro Gajoen 1,450 1,437 +13

Resort wedding 4,500 4,732 -232

Other 1,350 1,382 +32

■Overseas Wedding Services

Number of couples 15,500 14,960 +540

(Unit: Couple)

VIVI--33. Plan for the . Plan for the Fiscal YFiscal Yearear 2012011: 1: Number of CouplesNumber of Couples

- 50 -

VIVI--44. Plan for the . Plan for the Fiscal Fiscal Year 201Year 2011: 1: Investment and DepreciationInvestment and Depreciation

Planned Investment:Approx. ¥2.0 billion

Depreciation:Approx. ¥1.85 billion

- 51 -

Contact for inquiries concerning this documentContact for inquiries concerning this document

E-mail: [email protected]

http://www.watabe-wedding.co.jp/

Watabe Wedding CorporationPublic Relations Team

Tel: 03-5202-4133

Fax: 03-5202-4144

The forward-looking statements contained in this document are based upon targets and estimates, and do not constitute any guarantees or warrantees. When using this document, please be aware that actual results may differ from forecasts.

Created: August 10, 2011

briefing materials on consolidated results for the first ......-a system for tailoring new dresses...

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